According to a new regulatory filing, Twitter’s board wants the $44 billion Elon Musk buyout to go through, which is why it’s asking its shareholders to support the deal.
The board states that it “unanimously recommends that you (shareholders) vote (for) the adoption of the merger agreement,” according to a document filed with the Securities and Exchange Commission on Tuesday.
The board of directors unanimously recommended that shareholders approve “the compensation that will or may become payable by Twitter to its named executive officers in connection with the merger” and “the adjournment of the special meeting, from time to time, to a later date or dates, if necessary or appropriate, to solicit additional proxies if there are insufficient votes to adopt the merger agreement at the time of the special meeting.”
Twitter’s stock is currently trading at roughly $38.12, well below Musk’s offer price of $54.20 per share.
The company’s market cap has gone below $30 billion, which is notable. As a result, a $44 billion purchase is extremely advantageous to all existing stockholders.
Twitter Deal Still Unclear
The deal is still up in the air due to the issue of the platform’s bot count. Musk was given full access to Twitter’s “firehose” — an unrestricted stream of Tweets — earlier this month to check for the number of bots on the social network.
Musk stated there are still “unresolved matters” about the deal during a speech at the Qatar Economic Forum on Tuesday.
“There is the question of, will the debt portion of the round come together and then will the shareholders vote in favor,” he noted.
Tesla CEO Elon Musk has stated that he does not want to lead Twitter and instead wants to concentrate on “driving the product.” This echoes his sentiments expressed at the Twitter all-hands conference last week.